Yemen International Telecommunications Co. Management contract

Concluded

In November of 2003, France Telecom won the five-year, US$11.2 million management contract for TeleYemen and was to begin on January 1, 2004. TeleYemen was Yemen's monopoly provider of local and international direct dialling as well as internet services. It also provided analogue mobile services but competed with two other GSM operators in that sector. When the UK's Cable & Wireless (C&W) officially concluded its 13-year concession contract with TeleYemen on December 31, 2003, Yemen's state-owned Public Telecommunications Corporation (PTC) acquired C&W's shares and became the sole public owner of the company. Six international companies submitted bids by the October 1, 2003 deadline for the five-year management contract for TeleYemen. The bidders were France Telecom, Deutsche Telekom, Telecom Egypt, Monte Carlo-based Mediterranean Network, Korea Telecom and Hong Kong-based PCCW. With the concession contract expired, France Telecom won the contract to manage TeleYemen without taking any equity for five years from 1st January 2004 to 31st December 2008. In Decemeber 2008, the contract was extended for 2 years until 31st December 2010. France Telecom was expected to help build international communication and information technology infrastructure in Yemen's rural areas. TeleYemen provided fixed-line, telex, internet and analogue mobile services to some 70,000 subscribers by end 2003. In 2011, TeleYemen invited bids for a new operating contract, given that the management contract with France Telecom expired in June 2011. Management, so no investment update.